roger maxims

Berkshire Hathaway Q1 Portfolio Changes: Does It Pay to Follow Buffett's Moves?

Hi Felix

Another idiotic comment coming from you: " According to this paper a portfolio that mimicked Buffet’s stock investments would have outperformed S&P 500 by 14.6% annually between 1976 and 2006."

If this was to hold true from 2007 to 2037, Bear Stearns and Lehman would not have failed; GM and Chrysler would not have gone Chap. 11; Citi and Goldman would not have needed government help; and most importantly, you would not be sitting there making knee-jerk comments.

Quitting the Hedge Fund Game - Mark Sellers

Two possibilities really:

1. Seller is getting redemption requests flooding in right this minute, and like all his hedgie peers, is using the one-to-two year period to sell down gradually rather than capitulate. At least he can collect another two years of management fees. Possibly some performance fee @20% of a meagre return.

2. Seller could not figure out the bankruptcy risk of the investment-bank-holdin... he is using as broker dealer and leverage provider. Nor could he identify a reliable one out there. Without leverage, his hedge fund cannot return 65% p.a. or the 20% performance fee for him. Someone who gets paid in billions will be aghast at having to accept paychecks that has only eight zeros after the first digit.

Either way no fund manager, real estate agent or financial planner ever loses out when prices rise or fall. Nor do incompetent civil servants either.